#Lawsuits

Like most brands focused on smaller vehicles, Mini is not faring particularly well in the United States and dealers have grown annoyed. Some have even decided to take BMW to court over its handling of the brand, including one owned by former Mini dealer council chair David Peterson.

The allegations? BMW of North America breached its dealership agreement by failing to effectively promote and develop the Mini brand as promised.

Deciding whether or not BMW is truly at fault should prove exceedingly difficult. But Mini is clearly struggling. Over a third of its annual volume goes to the Countryman — its only crossover model. The rest of its sales are broken up between the numerous variations of its iconic small car, which isn’t occupying the “hot segment” at present. With a not-so-diverse lineup and MSRPs better suited to larger vehicles, Mini’s annual sales have been dwindling since 2013 and failed to surpass 45,000 U.S. deliveries in 2018. Unfortunately, 2019 is already on track to be markedly worse.

A Jeep Wrangler owner has accused Fiat Chrysler Automobiles of ignoring an alleged safety issue with the vehicle’s steering system; one that leads to the notorious “death wobble.”

The term is one Jeep fans are already familiar with and basically entails sudden, violent vibrations from front-end steering components, usually taking place on the highway. On Wednesday, a lawsuit filed on behalf of New Jersey resident Clair Reynolds claimed FCA delivered a “defectively designed and/or manufactured front axle and damping system” allowing for the dreaded wobble to occur after “encountering road variations” at speed.

While the National Highway Transportation Safety Administration has never issued a recall related to the issue, it’s familiar with the phenomenon and has been pressured by safety advocates to investigate since before 2012. But previous studies into the wobble found it relatively difficult to replicate, and no serious injuries have stemmed from it. Reynolds’ legal council says that doesn’t cut it.

Wells Fargo will reportedly pay customers a minimum of $386 million to settle class-action claims that the bank covertly signed customers up for auto insurance they did not want or need.

Back in the summer of 2017, the bank found itself implicated in widespread auto insurance and mortgage lending abuses. Over a year later, Wells Fargo was slapped with a $1 billion fine from the Consumer Financial Protection Bureau and Office of the Comptroller of the Currency to settle U.S. investigations into the company’s insurance and mortgage practices.

While the auto insurance plan ended in 2016, roughly 800,000 customers (or 600k by Wells Fargo’s estimates) were believed to be affected by the auto insurance issue over roughly a four-year period. For most, that meant being overcharged for insurance they didn’t need., but some customers ended up with their vehicles repossessed and their credit rating demolished, promoting the class-action suit.

There’s drama in Auburn Hills tonight. And, by the sounds of it, for many days leading up to this point. Reid Bigland, Fiat Chrysler’s U.S. sales boss and the appropriately imposing head of the cash-cow Ram brand, has filed a whistleblower lawsuit against his employer.

Bigland, who joined Chrysler in 2006 and soon found himself heading up Maserati, Alfa Romeo, and Dodge, plus serving as CEO of FCA Canada (a role he maintains), claims the company’s HQ is awash in bad blood. The exec says he’s being punished for not taking the fall in a federal investigation into FCA’s sales reporting.

A class-action lawsuit filed against Ford Motor company in 2017 is close to bearing fruit for nearly two million current or former owners, but Ford could find itself on the hook for far more than the $35 million reached in an earlier settlement.

The automaker is awaiting the results of an appeal by nonprofit advocacy group Public Citizen, which felt the 1.9 million Ford Focus and Fiesta buyers whose lives were disrupted by wonky PowerShift transmissions would only end up getting shafted, once again.

A lawsuit filed against Fiat Chrysler Automobiles way back in 2015 has reached its conclusion. In order to temper the ire of shareholders angered by the company’s EcoDiesel blunder and earlier suspension recall controversy, FCA has agreed to hand over $110 million, closing the door on a contentious chapter of its history.

Treating Tesla CEO Elon Musk and the U.S. Securities and Exchange Commission like a pair of squabbling kindergarteners, a federal judge handed down a message to both on Thursday. Basically, figure out your shit.

The two sides remain locked in a battle sparked by a true product of our time — tweets. The SEC claims Musk’s recent use of Twitter violates the conditions set out in the settlement reached between the regulator and Tesla last year, a settlement resulting from a lawsuit over … tweets.

“Put your reasonableness pants on,” Judge Alison Nathan told the two parties in a New York City federal court yesterday.

General Motors’ legal team has requested that the lawsuit filed by the United Automobile Workers, which claims that its decision to idle factories is in violation of an existing union agreement, be dismissed by a federal judge. The UAW alleges that GM sidestepped the collective bargaining agreement established in 2015 by closing plants prematurely. But the automaker has been careful to say that the facilities are being “unallocated,” claiming the union failed to adhere to the grievance arbitration procedure outlined in its contract — which forbids UAW from going to court until all other avenues have been exhausted.

The request came with a bundle of other motions, filed on March 21st, and included a request to transfer the case from Youngstown, Ohio (where the contentious Lordstown Assembly is located) to the eastern district of Michigan.

While three and a half years have passed since the Volkswagen diesel scandal broke, its reverberations are still being felt. For the automaker turned green soothsayer, this usually comes with financial hardship attached, plus the requisite regurgitation of a past VW would like to see forgotten.

The latest salvo launched at VW over its emissions-rigged cars comes from the U.S. Securities and Exchange Commission, which is suing the company — as well as its former CEO, Martin Winterkorn — for the “massive fraud” it says VW perpetrated on investors.

Jerry Seinfeld is suing the company that sold him an ultra-rare 1958 Porsche 356 A 1500 Carrera after an earlier suit brought its authenticity into question. The comedian sold the car in 2016 for $1.5 million via a Gooding & Company auction only to see the buyer, Fica Frio Limited, claim it was fake.

(Jerry, just remember — it’s not a lie if you believe it.)

Seinfeld is now seeking unspecified damages in a Manhattan federal court from European Collectibles of Costa Mesa, California. However, the suit’s primary mission isn’t about hunting for a payday — Seinfeld appears more interested in clearing his name and forcing the dealership into settling things with Fria Fico directly.

In addition to being one of America’s most-famous comedians, Jerry Seinfeld also happens to be a car snob of the highest order. His collection of vintage automobiles is so vast that he got the itch to sell a large portion a few years ago. As his fleet is already heavy with Porsches, his favorite brand, Seinfeld worked with Gooding & Company to get over a dozen under the gavel and make room for newcomers. Among these was an extremely rare 1958 Porsche 356 A 1500 GS/GT Carrera Speedster. It sold in 2016 and, yada yada yada, eventually resulted in a big lawsuit.

Estimated to move at over $2 million, the model went for $1.54 million to Fica Frio Ltd. with the suit surfacing just a few days ago. According to details outlined in the lawsuit, it was brought to the United Kingdom after being purchased. Then, in March of 2017, Fica Frio asked Lee Maxted-Page, the Managing Director of Maxted-Page Limited (which knows its Porsches), to evaluate and prep the vehicle for resale. However, the appraiser expressed concerns that the Porsche might not be authentic.

Things are starting to get truly ugly between Canada’s Unifor and General Motors. On Friday, the union held a rally in Windsor, Ontario, with that automaker’s headquarters just a river away. During the event, Unifor President Jerry Dias expressed his annoyance with the automaker’s restructuring plan and promised to bring the noise to GM’s front door during the North American International Auto Show this week.

Friday’s gathering, which Unifor and the Windsor and District Labour Council claimed drew around 2,000 people despite its brevity, focused primarily on the company’s decision to shift more of its North American production to Mexico and the shuttering of Oshawa Assembly and the end of this year. Dias said he wants the union to work with the automaker to keep Canadian jobs and avoid a potential boycott. Though that might be just around the corner, as the UAW has already issued a boycott of its own within the United States.

Fiat Chrysler Automobiles is on the cusp of reaching a settlement with the U.S. Justice Department over undeclared emissions control software that allowed 104,000 diesel vehicles to pollute beyond legal limits.

The settlement is expected to include significant civil penalties and fines to account for the excess diesel emissions while also covering claims from the Justice Department, various U.S. states, and vehicle owners — similar to Volkswagen’s “Dieselgate” settlement. A final agreement could be reached any day now.

Last week a lawsuit was filed with the U.S. District Court in Youngstown claiming that General Motors is in violation of a “memorandum of understanding” with the United Automobile Workers by allowing temporary employees to support the launch of some new product from Fort Wayne Assembly Plant. The facility, which is responsible for manufacturing the Chevrolet Silverado and GMC Sierra pickups, is alleged to have brought on temporary workers from May to August of 2018 instead of using its laid-off full-time workers. The UAW claims this is decision represents a breach of contract.

The union says there are nearly 700 workers laid off from the “nearby” Lordstown, Ohio Assembly Plant — many of whom have applied to transfer to the Fort Wayne as is their right under the current contract with GM.

Tesla’s nine-member board now numbers eleven, with many shareholders hoping that the addition of two independent directors — a key directive of Tesla’s SEC settlement — helps keep a lid on CEO Elon Musk’s stock-rocking shenanigans.

Whether or not the two new members can actually do this remains to be seen. Musk continued antagonizing the Securities and Exchange Commission even after agreeing to the settlement that saw him removed as chairman, and he insists no one’s vetting his tweets. Speaking of ill-considered tweets, Musk’s lawyers claim the British cave diver suing Musk for defamation should just let it go.